Systems, methods and devices for selling transaction instruments

ABSTRACT

The present invention generally relates to a system and method for distributing an open transaction instrument. The system includes the steps of: accessibly offering for sale, in a retail environment, the open transaction instrument; selling a selected open transaction instrument; and enabling the use of the open transaction instrument. The transaction instrument may be, for example, an open pre-paid card. Furthermore, accessibly offering the open pre-paid card for sale, in one exemplary embodiment, is performed by hanging the pre-paid card on a rack. The distribution of the open transaction instrument may also comprise the step of sending a message, in substantially real time, causing the pre-paid open transaction instrument to be funded but not activated. Also, in accordance with further exemplary embodiments of the present invention, an issuer system is suitably configured to leverage existing infrastructure for inventory and related processes.

CROSS-REFERENCE TO RELATED APPLICATIONS

This application is a continuation of U.S. Ser. No. 11/556,953 entitled“SYSTEMS, METHODS, AND DEVICES FOR SELLING TRANSACTION INSTRUMENTS,”which was filed on Nov. 6, 2006, which claims priority to, and thebenefit of, U.S. Ser. No. 10/905,663 entitled “SYSTEMS, METHOD, ANDDEVICES FOR SELLING TRANSACTION INSTRUMENTS,” which was filed on Jan.14, 2005, U.S. Provisional Application Ser. No. 60/552,842, entitled“SYSTEM, METHOD FOR PRE-PAID CARD RETAIL DISTRIBUTION,” filed Mar. 12,2004, and U.S. Provisional Application Ser. No. 60/522,955, entitled“PREPAID CARD IN-PERSON RETAIL DISTRIBUTION INVENTORY MANAGEMENTPROCESS,” filed Nov. 24, 2004, all of which are incorporated herein byreference.

FIELD OF INVENTION

The present invention generally relates to transaction accounts, andmore particularly, to systems and methods for facilitating thedistribution of transaction instruments associated with transactionaccounts.

BACKGROUND OF THE INVENTION

Consumers may use a transaction account, which may be associated with anaccount number and/or transaction instrument (e.g., charge card, creditcard, debit card, gift card, etc.), as a form of payment or foridentification in various transactions. Transaction instruments aredesirable for a number of reasons such as, for example, utilizing atransaction instrument associated with a stored value (e.g., pre-paid)card may be a safe and convenient way to avoid carrying or handling cashand loose change. Also, it is often convenient to give pre-paid cards asgifts or to use pre-paid cards to pay for transactions while traveling.

Stored value cards are forms of transaction instruments associated withtransaction accounts, wherein the stored value cards provide cashequivalent value that may be used within an existing payment/transactioninfrastructure. Stored value cards are frequently referred to as gift,pre-paid or cash cards, in that money is deposited in the accountassociated with the card before use of the card is allowed. If acustomer deposits ten dollars of value into the account associated withthe card, the card may be used for payments up to ten dollars.

“Open cards” are cards that are generally accepted at differentmerchants. For example, open cards are cards that are generally acceptedat merchants that are not directly affiliated with each other or withinthe same corporate chain. Examples of open cards include AmericanExpress®, Visa®, and Discover®, MasterCard® cards, which may be used atmany different retailers and other businesses. In contrast, “closedcards” are cards that may be restricted to use in a particular store orwithin a particular chain of a stores. One example of a closed card is apre-paid gift card that may only be purchased at, and only be acceptedat, a clothing retailer, such as The Gap®.

In distributing open cards, additional security issues often existcompared to distributing closed cards. For example, open cards may beused in more places and through a variety of authentication systems.Thus, issuer's of open cards typically do not sell those cards as offthe shelf items. In fact, open cards are generally distributed throughthe mail. Another method of distributing an open card involves selling adummy ‘off-the shelf’ card and/or ATM only ‘off-the shelf’ card to acustomer, whereupon a working open card is later mailed to the customer.In both cases, the mailed card is generally pre-funded or pre-approved,and for security reasons, the recipient typically calls an interactivevoice response (“IVR”) system to activate the card. However, the delaycaused by the mailing process hinders the distribution of transactioninstruments.

Banks may also distribute cards that are pre-funded and then activatedvia IVR, but these cards are generally kept securely behind the counterand not within the customer's reach. However, it is also desirable todistribute transaction instruments through additional channels otherthan banks. For example, it is often convenient for consumers topurchase transaction instruments while conducting other transactionswith a third-party, such as a merchant. Similarly, an individual maywish to purchase a pre-paid card in conjunction with purchasing goodsand services. In this regard, retailers such as The Gap®, sell privatelabel, closed pre-paid cards wherein a message is transmitted to a hostcomputer from the purchasing location upon purchase that finds andactivates the card.

Thus, although various systems exist for distributing transactioninstruments, although various funding systems have been used, andalthough various methods exist for activating a transaction account,additional systems and methods are desired to facilitate thedistribution of transaction instruments. Furthermore, a need exists forsystems and methods that enable a consumer to more conveniently obtain atransaction instrument such as a stored value card.

SUMMARY OF THE INVENTION

The present invention generally relates to a system and method fordistributing an open transaction instrument. The method includes thesteps of: accessibly offering for sale, in a retail environment, theopen transaction instrument; selling a consumer selected opentransaction instrument; and enabling the use of the open transactioninstrument. The transaction instrument may be, for example, an openpre-paid card. Furthermore, accessibly offering the open pre-paid cardfor sale, in one exemplary embodiment, is performed by hanging thepre-paid card on a rack. The distribution of the open transactioninstrument may also comprise the step of sending a message, insubstantially real time, causing the pre-paid open transactioninstrument to be funded but not activated until later through aninteractive voice response system, for example. In accordance withfurther exemplary embodiments, an issuer system may be configured toleverage pre-existing inventory and financial settlement processingsystems, such as a Travelers Cheque infrastructure.

BRIEF DESCRIPTION OF THE DRAWINGS

A more complete understanding of the present invention may be derived byreferring to the detailed description and claims when considered inconnection with the Figures, wherein like reference numbers refer tosimilar elements throughout the Figures, and:

FIG. 1 illustrates a block diagram overview of an exemplary transactioninstrument distribution system;

FIG. 2 illustrates a flow diagram showing an exemplary transactioninstrument distribution method;

FIG. 3 illustrates an exemplary financial transaction instrument;

FIG. 4 illustrates a block diagram overview of an exemplary TravelersCheque infrastructure and an exemplary transaction card infrastructure;

FIG. 5 illustrates a flow diagram showing an exemplary reverse inventorymethod; and

FIG. 6 illustrates a block diagram of an exemplary distribution channel.

DETAILED DESCRIPTION OF EXEMPLARY EMBODIMENTS

While the exemplary embodiments herein are described in sufficientdetail to enable those skilled in the art to practice the invention, itshould be understood that other embodiments may be realized and thatlogical and mechanical changes may be made without departing from thespirit and scope of the invention. Thus, the following detaileddescription is presented for purposes of illustration only and not oflimitation.

In general, systems, methods, and devices are suitably configured tofacilitate the distribution of a transaction instrument through adistributor (defined below), e.g., a merchant. The distribution of atransaction instrument may be facilitated by, for example, offering thetransaction instrument to consumers in a manner that is readilyaccessible to consumers. Distribution of transaction instruments may befurther facilitated by sending a “fund but do not activate” message tothe issuer when the transaction instrument is distributed to theconsumer. Distribution of transaction instruments may also befacilitated by using pre-existing transaction account infrastructure(s)and/or Travelers Cheque infrastructure(s) to process informationcommunicated from the distributor and/or to provide services related tothe transaction account.

A general exemplary system configuration may include, with reference toFIG. 1, a transaction instrument distribution system 100 which comprisesan issuer system 110 and a distributor system 130. Transactioninstrument distribution system 100 may also comprise a third-partypartner system 120. Issuer system 110 is any person, entity, softwareand/or hardware suitably configured to issue a transaction instrument toa consumer 140 through a distributor 130 and/or a third-party partner120. Distribution system 130 is any person, entity, software and/orhardware suitably configured to distribute the transaction instrument toconsumer 140. For example, distribution system 130 may be a merchant.Furthermore, third-party partner system 120 may serve as an intermediarybetween distribution system 130 and issuer system 110. Consumer 140 mayuse the transaction instrument with various merchants 130 or othermerchants not in the distribution chain not reflected here, automatedteller machines (“ATMs”) 150, and/or the like. Thus, issuer system 110may be suitably configured to communicate with third-party partnersystem 120, merchant system 130, consumers 140, and/or ATMs 150. Inthese examples, communications between any of these components may takeplace in various manners, for example, via a network 170, or via othermodes of communication.

The systems and/or components of the systems discussed herein may alsoinclude one or more host servers or other computing systems including aprocessor suitably configured to process digital data, a memory coupledto the processor for storing digital data, an input digitizer coupled tothe processor for inputting digital data, an application program storedin the memory and accessible by the processor for directing processingof digital data by the processor, a display coupled to the processor andmemory for displaying information derived from digital data processed bythe processor and a plurality of databases, the databases includingdistribution data, customer data, merchant data, financial institutiondata and/or like data that could be used in association with the presentinvention. As those skilled in the art may appreciate, a computer mayalso include an operating system (e.g., Windows NT, 95/98/2000, Linux,Solaris, etc.) as well as various conventional support software anddrivers typically associated with computers.

In one exemplary embodiment of the present invention, transactioninstrument distribution system 100 is suitably configured to facilitatedistribution of transaction instruments through in-person marketingmethods. For example, a transaction instrument, such as an open pre-paidcard, may be offered by a distributor, e.g., a merchant. The merchantmay present the open pre-paid card, for example, by hanging the card ona rack near the check out stand. In this example, the open, pre-paidcard is accessible to the customers who may select (i.e., physicallyobtain) one or more pre-denominated cards, and purchase these cards withthe rest of their purchases. Displaying the pre-paid card in a readilyaccessible manner may thus facilitate convenient acquisition of openpre-paid cards by consumers, and may therefore facilitate distributionof the pre-paid cards.

Although frequently described herein as an open pre-paid card which isassociated with a transaction account, a transaction instrument, as usedherein, may be associated with an open account or a closed accountsystem. An open transaction instrument, for example, may comprise atransaction instrument that is generally accepted at differentmerchants. The transaction instrument may also exist in a non-physicalembodiment. For example, a transaction instrument may be distributed innon-physical embodiments such as an account number, frequent flyeraccount, telephone calling account, and/or the like. Furthermore, aphysical embodiment of a transaction instrument may be distributed as acharge card, credit card, debit card, loyalty card, pre-paid card,diner's card, phone card, transponder, and/or the like.

Furthermore, transaction accounts may be associated with variousapplications that allow the customers to participate in variousprograms, such as, for example, loyalty programs. A loyalty program mayinclude one or more loyalty accounts. Exemplary loyalty programs includefrequent flyer miles, on-line points earned from viewing or purchasingproducts at websites on-line, and programs associated with diner'scards, charge cards, credit cards, debit cards, hotel cards, and/or thelike. Generally, the user is both the owner of the transaction accountand the participant in the loyalty program; however, this association isnot necessary. For example, a participant in a loyalty program may giftloyalty points to a user who pays for a purchase with his owntransaction instrument, but uses the gifted loyalty points instead ofpaying the monetary value.

In accordance with another aspect of the present invention, thetransaction instrument may be distributed via any suitable distributiontechnique. For example, the transaction instrument may be purchased bythe distributor and resold to a consumer. In another exemplaryembodiment, however, the transaction instrument may be consigned to thedistributor who, upon sale to a consumer, pays the issuer. Otherdistribution techniques may also be employed. For example, transactioninstruments may be distributed for free, e.g., as part of a promotionalactivity.

In one exemplary embodiment, the transaction instrument comprises anopen pre-paid card that is un-funded and not activated when on displayby a merchant. The card is funded upon purchase by a consumer andenabled, i.e. activated, via an automated activation system. Oneexemplary automated activation system is an IVR system. The open cardmay be used at a variety of merchants. Thus, transaction instrumentdistribution system 100 facilitates convenient distribution oftransaction instruments.

Although described as a merchant system herein, in general, distributorsystem 130 may be any service provider, retailer, financial institution,travel agency, or other entity that performs in-person distribution of atransaction instrument. The term ‘retail environment’ should beconstrued broadly to encompass any environment where product isaccessible to the public for the public's selection, such as whereproduct is accessibly displayed on counters, shelves, display racks,and/or the like. Furthermore, in one exemplary embodiment, a merchantmay comprise an entity that offers goods where product is accessible toconsumers. As such, the merchant may exist in a variety of environments,including, but not limited to retail stores, banks, credit unions,and/or the like. In accordance with various exemplary embodiments of thepresent invention, distributor system 130 is suitably configured tooffer transaction instruments to consumers in a manner whereby theconsumers may physically select/obtain the transaction instrument. Forexample, the transaction instrument may be a card and the card may beassociated with a package. In this example, the packaged card may bedisplayed by hanging the package on a rack display. The packaged cardmay also be displayed by placing the package on a display shelf, in avending machine, or through other suitable display techniques. Theseexemplary methods of displaying the package facilitate selection by aconsumer of the package. The consumer may then begin the process ofacquiring ownership of the package, for example, by picking up thepackage and adding it to their shopping cart. In other exemplaryembodiments, the transaction instrument is distributed withoutpackaging.

Although the present invention contemplates the sale of transactioninstruments to consumer 140, in other embodiments, transactioninstruments may be distributed to merchants or consumers for free. Inaccordance with other aspects of the present invention, distributorsystem 130 may process purchases and communicate transaction informationwith issuer 110 upon sale of an item. For example, distributor system130 may sell DVD's, produce, toys, food, hardware, and/or the like, andmay communicate (directly or indirectly) with the issuer of a chargecard, credit card, a pre-paid card, and/or the like to reconcile paymentfor these purchases.

In general, distributor system 130 is similarly configured tocommunicate with issuer system 110 in connection with the distributionof the transaction instrument. The information communicated may varydepending on the distribution technique used, the type of transactioninstrument, the security systems in place, and/or the like. In oneexemplary embodiment, distributor system 130 comprises hardware and/orsoftware, such as a cash register, having a point of sale deviceintegrated therein. Distributor system 130 may have a computing centersuch as a mainframe computer. However, the computing center ofdistributor system 130 may be implemented in other forms, such as apersonal computer, a mini-computer, a PC server, a network set ofcomputers, or the like.

The computer is suitably configured to receive input identifying thetransaction instrument to be distributed. For example, the computer maybe suitably configured to scan a bar code (or read a magnetic stripe)and receive information identifying the transaction instrument beingpurchased. The scanned/read information may comprise an account number.This information may be scanned/read from the card itself or from thepackage. In one exemplary embodiment, the account number is the issuer'saccount number corresponding to that transaction instrument. In anotherembodiment, the account number is, for example, the third partydistribution partner's account number or serial number. The computer mayfurther be suitably configured to compare the identifying information toinventory recorded in a database, to look up the sales price, and/or tocalculate the sales price associated with the transaction instrument.

In one embodiment, for example, a third-party partner account number isscanned from the package holding a pre-paid card and the purchase priceis looked up from inventory. The third-party partner account number, thepurchase price of the card, and the merchant's own identification numbermay be communicated to the third party partner who may convert thethird-party partner account number to the issuer's corresponding accountnumber and forward this information to the issuer.

Furthermore, the merchant computer may be suitably configured to send aFund/Init message (as defined herein) to the issuer. The Fund/Initmessage may comprise the account number scanned from the package (e.g.,the issuer's account number or the third party's account number), thevalue of the transaction (e.g., dollar amount), and/or a merchant numberidentifying the merchant selling this transaction instrument. TheFund/Init message may further be a message that requests approval ofsale of the transaction instrument. The computer may also be suitablyconfigured to receive an ‘approved/authorized’ message that authorizesthe sale of the pre-paid card. Furthermore, the Fund/Init message may bea message that causes the transaction account to be funded upondistribution of the related transaction instrument. Moreover, theFund/Init message may be sent, substantially in real time, i.e. at aboutthe time of the distribution/sale of the transaction instrument. In yetfurther exemplary embodiments, distributor system 130 may be configuredto send a signal, and not necessarily a Fund/Init signal, to third partypartner system 120. This signal may comprise the third party's accountnumber, the value of the transaction, and/or the merchant numberidentifying the merchant selling this transaction instrument. The thirdparty partner system may be configured to recognize that signal as arequest to approve the sale of the transaction instrument, and toconvert the third party account number to the corresponding issueraccount number. In this example, it is third party partner system 120that is configured to send a Fund/Init message to the issuer.

Distributor system 130, e.g., a merchant, may also be suitablyconfigured to distribute other information. In one exemplary embodiment,the information communicated includes the consumer name, an accountnumber, a sequential number, the date of distribution of the transactioninstrument, the time of distribution, the place of distribution, thetype of transaction instrument distributed, and/or the like. Thecommunicated information may be useful for issuer system 110 anddistributor system 130 to reconcile amounts owed between themselves, totrack inventory, to limit fraud, to activate the transaction account,and/or to provide additional services. This other information may besent at the time of the purchase, or as a batch process on a periodicbasis. Some of this information may, for example, be communicated viabatch processing that is performed on a daily basis, in real time,and/or at some other appropriate interval. The some of this informationmay be communicated to issuer 110 directly in electronic format orindirectly in a verbal, or printed format that later is entered inelectronic format into issuer system 110.

The distributor system 130 may include a computer that may be suitablyconfigured to access a suitable website or other Internet-basedgraphical user interface that is accessible by users. In one embodiment,the Internet Information Server, Microsoft Transaction Server, andMicrosoft SQL Server, are used in conjunction with the Microsoftoperating system, Microsoft NT web server software, a Microsoft SQLdatabase system, and a Microsoft Commerce Server. Additionally,components such as Access or SQL Server, Oracle, Sybase, Informix MySQL,Intervase, etc., may be used to provide an ADO-compliant databasemanagement system. The term “webpage” as it is used herein is not meantto limit the type of documents and applications that might be used tointeract with the user. For example, a typical website might include, inaddition to standard HTML documents, various forms, Java applets,Javascript, active server pages (ASP), common gateway interface scripts(CGI), extensible markup language (XML), dynamic HTML, cascading stylesheets (CSS), helper applications, plug-ins, and/or the like.

Issuer system 110 may include any software, hardware, financialinstitution, credit card company, bank, business, and/or the like thatis capable of issuing a transaction instrument. Issuer system 110 mayalso be suitably configured to receive a Fund/Init message, process arequest for sale of a transaction instrument, and/or return anauthorization/approval message.

In accordance with exemplary embodiments, issuer system 110 may includea production system for producing physical embodiments of transactioninstruments and/or for creating the associated transaction accounts. Inaddition, issuer system 110 may comprise systems that are suitablyconfigured to track inventory, receive information from distributorsystem 130, receive information from third-party partner system 120,identify fraud, replace lost transaction instruments, send commissionpayments, receive amounts owed, perform accounting, and/or the like fortransaction instruments and/or associated transaction accounts.

By way of example, issuer system 110 may be a financial institution thatissues a pre-paid card to distribution system 130, e.g., a merchant. Forexample, issuer system may consign the transaction instrument to themerchant. In this example, issuer system 110 may further pay acommission to the distributor and/or receive payment from thedistributor.

In another exemplary embodiment, issuer system 110 is configured with,for example, a card authorization system, that may be suitablyconfigured to receive a message from a point of sale device atdistributor system 130. The card authorization system may be suitablymodified to recognize a Fund/Init message from distributor system 130 orthird party partner system 120. For example, a Fund/Init message may besimilar to a standard transaction message with one or more fieldschanged to indicate that a customer desires to acquire a particulartransaction instrument. The field(s) that are changed may comprise, forexample, “message type”, “processing code”, “function code”, and/or thelike. Information sent in the Fund/Init message may include, forexample, the relevant transaction account number, an indication that itis being sold, and/or a request to find the transaction account. Uponrecognizing the Fund/Init message, the card authorization system may besuitably configured to send a message to a processing system. Forexample, with reference to a stored value card, a message may be passedto a stored value card processing system (e.g., SVCAP).

The stored value processing system may comprise a logic system that cancheck to see if the card status is ‘already sold’, and/or (but notlimited to) whether the card status is ‘at the merchant’. In oneexemplary embodiment, the stored value processing system may query anappropriate database to check the card status. Furthermore, the storedvalue processing system may, upon determining that the card can be sold,(1) adjust the card status in the database to ‘sold’, and/or (2) send anauthorization signal back, through the card authorization system, to thepoint of sale device.

In one exemplary embodiment, issuer system 110 may be further configuredwith an interactive voice response system (“IVR”) that may be suitablyconfigured to receive a request from a customer to activate a purchasedtransaction instrument (e.g., card). The IVR may be suitably configuredto check an appropriate database and determine if the status of the cardis “sold”. The IVR may also be configured to inform the customer, if thecard status happens to be ‘sold’, that the card is activated and/or toactivate the card. For example, the card may be activated by adjustingthe status of the card in a suitable database.

In this manner, issuer system 110 may be configured to facilitate a userpurchasing, for example, a pre-paid card and activating the pre-paidcard right away. In one embodiment, transaction instrument distributionsystem 100 may be configured to facilitate activation (and thus use) ofa transaction instrument within seconds after the transaction instrumentis distributed (e.g., purchased). In other embodiments, the transactioninstrument may be used within less than 5 minutes of the purchase,within 24 hours of purchase, or at anytime after that. In furtherexemplary embodiments, the transaction instrument may be used toconclude purchases made at the time of the purchase of the transactioninstrument. Other automated and non-automated activation system may alsobe used to activate the transaction accounts. For example, customerservice representatives may be called to activate an account, or anaccount may be activated via the internet.

Issuer system 110 may also include, for example, an inventory andfinancial settlement processing system, which operates using serialnumber logic. For example, issuer system 110 may include a TravelersCheque system for creating Travelers Cheques, for delivering theTravelers Cheques to distributors, and for tracking inventory,preventing fraud, replacing lost transaction instruments, sendingcommission payments, receiving amounts owed, performing accounting,and/or the like. These established infrastructures (e.g., TravelersCheque infrastructures) may, in accordance with one aspect of thepresent invention, be leveraged to perform similar functions for thedistribution of transaction instruments. Thus, issuer system 110 may, inaccordance with one aspect of the present invention, avoid the creationof new systems that facilitate this new method of distributingtransaction instruments. Therefore, issuer system 110 may leverage apre-existing inventory and/or financial settlement processinginfrastructure (e.g., Travelers Cheque infrastructure) to receiveinformation received from merchant system 130, to process theinformation, and/or to provide other services related to the pre-paidcard. For additional information related to leveraging a TravelersCheque infrastructure, see for example, U.S. Non-Provisional patentapplication Ser. No. 10/707,779, filed Jan. 12, 2004, entitled “SYSTEMS,METHODS, AND DEVICES FOR SELLING TRANSACTION ACCOUNTS”, which isincorporated herein by reference.

In various exemplary embodiments, issuer system 110 may distributetransaction instruments to consumers 140 using an intermediarythird-party partner system 120. Third-party partner system 120 may besuitably configured to perform many of the tasks discussed withreference to issuer system 110 and/or distributor system 130.Furthermore, in this exemplary embodiment, merchant 130 may be suitablyconfigured to send a transaction signal to third-party partner system120 and to receive an approved/authorized message from third-partypartner system 120. Similarly, issuer system 110 may be suitablyconfigured to receive a Fund/Init message from third-party partnersystem 120 and to provide an approved/authorized message to third-partypartner system 120. In accordance with an exemplary embodiment,third-party partner system 120 may also comprise a database forconverting the identification number associated with the transactioninstrument from a third party partner's number to the issuer's number.For example, a merchant may send a transaction signal including thethird-party partner system's account number to the third-party,whereupon that number is converted to an issuer number and a Fund/Initsignal is sent to the issuer along with the issuer number.

As used herein, the terms “user”, “end user”, “consumer”, “customer” or“participant” may be used interchangeably with each other, and eachshall mean any person, entity, machine, hardware, software, business,issuer system, and/or distributor system. A user may acquire by gift,purchase, or the like, a transaction instrument, for example, an openpre-paid card, and may use that card at different merchants to completea purchase. Also, each user may be equipped with a computing system tofacilitate online commerce transactions. For example, the user may havea computing unit in the form of a personal computer, although othertypes of computing units may be used including laptops, notebooks, handheld computers, set-top boxes, and/or the like. The user computer may bein a home or business environment with access to a network. In anexemplary embodiment, access may be through the Internet through acommercially available web-browser software package.

Furthermore, the terms “business” or “merchant” may be usedinterchangeably with each other and shall mean any person, entity,distributor system, software and/or hardware that is a provider, brokerand/or any other entity in the distribution chain of goods or services.For example, the merchant may be a grocery store, an on-line merchant,airline, hotel, and/or the like. With regard to use of the opentransaction instrument, the user may communicate with the merchant inperson (e.g., at the box office), telephonically, or electronically(e.g., from a user computer via an internet). During the interaction,the merchant may offer goods and/or services to the user. The merchantmay also offer the user the option of paying for the acquisition using atransaction instrument. Furthermore, the transaction instrument may beused by the merchant as a form of identification of the user. Themerchant may have a computing unit implemented in the form of acomputer-server, although other implementations are possible.

In general, the transaction instrument may be used for transactions muchlike other transaction instruments. Communication between the userand/or merchant and the system of the present invention is accomplishedthrough any suitable communication means, such as, for example, atelephone network, Intranet, Internet, point of interaction device(point of sale device, personal digital assistant, cellular phone,kiosk, etc.), online communications, off-line communications, wirelesscommunications, and/or the like. One skilled in the art may alsoappreciate that, for security reasons, any databases, systems, orcomponents of the present invention may consist of any combination ofdatabases or components at a single location or at multiple locations,wherein each database or system includes any of various suitablesecurity features, such as firewalls, access codes, encryption,de-encryption, compression, decompression, and/or the like.

It may be appreciated that many applications of the present inventioncould be formulated. One skilled in the art may appreciate that anetwork may include any system for exchanging data or transactingbusiness, such as the Internet, an intranet, an extranet, WAN, LAN,satellite communications, and/or the like. It is noted that the networkmay be implemented as other types of networks, such as an interactivetelevision (ITV) network. The users may interact with the system via anyinput device such as a keyboard, mouse, kiosk, personal digitalassistant (e.g., Palm Pilot®), handheld computer, cellular phone and/orthe like. Similarly, the invention could be used in conjunction with anytype of personal computer, network computer, workstation, minicomputer,mainframe, or the like running any operating system such as any versionof Windows, Windows NT, Windows 2000, Windows 98, Windows 95, MacOS,OS/2, BeOS, Linux, UNIX, Solaris or the like. Moreover, although theinvention is frequently described herein as being implemented withTCP/IP communications protocols, it may be readily understood that theinvention could also be implemented using IPX, Appletalk, IP-6, NetBIOS,OSI or any number of existing or future protocols. Moreover, the systemmay contemplate the use, sale or distribution of any goods, services orinformation over any network having similar functionality describedherein.

The computing units may be connected with each other via a datacommunication network. The network may be a public network and assumedto be insecure and open to eavesdroppers. In the illustratedimplementation, the network may be embodied as the internet. In thiscontext, the computers may or may not be connected to the internet atall times. For instance, the customer computer may employ a modem tooccasionally connect to the internet, whereas the bank computing centermight maintain a permanent connection to the internet. Specificinformation related to the protocols, standards, and applicationsoftware utilized in connection with the Internet may not be discussedherein. For further information regarding such details, see, forexample, DILIP NAIK, INTERNET STANDARDS AND PROTOCOLS (1998); JAVA 2COMPLETE, various authors, (Sybex 1999); DEBORAH RAY AND ERIC RAY,MASTERING HTML 4.0 (1997). LOSHIN, TCP/IP CLEARLY EXPLAINED (1997). Allof these texts are hereby incorporated by reference.

The systems may be suitably coupled to the network via data links. Avariety of conventional communications media and protocols may be usedfor data links. For example, a connection to an Internet ServiceProvider (ISP) over the local loop as is typically used in connectionwith standard modem communication, cable modem, Dish networks, ISDN,Digital Subscriber Line (DSL), or various wireless communicationmethods. The merchant system might also reside within a local areanetwork (LAN) that interfaces to the network via a leased line (T1, D3,etc.). Such communication methods are well known in the art and arecovered in a variety of standard texts. See, e.g., GILBERT HELD,UNDERSTANDING DATA COMMUNICATIONS (1996), hereby incorporated byreference.

The distributor, third-party partner, and/or the issuer may beinterconnected via a second network and/or a third network, eachreferred to as a payment network. The payment network which may be partof certain transactions represents existing proprietary networks thatpresently accommodate transactions for charge cards, credit cards, debitcards, and other types of financial/banking cards. The payment networkis a closed network that is assumed to be secure from eavesdroppers.Exemplary transaction networks may include the American Express®,VisaNet® and the Veriphone® networks.

Any databases discussed herein may be any type of database, such asrelational, hierarchical, graphical, object-oriented, and/or otherdatabase configurations. Common database products that may be used toimplement the databases include DB2 by IBM (White Plains, N.Y.), variousdatabase products available from Oracle Corporation (Redwood Shores,Calif.), Microsoft Access or Microsoft SQL Server by MicrosoftCorporation (Redmond, Wash.), or any other suitable database product.Moreover, the databases may be organized in any suitable manner, forexample, as data tables or lookup tables. Each record may be a singlefile, a series of files, a linked series of data fields or any otherdata structure. Association of certain data may be accomplished throughany desired data association technique such as those known or practicedin the art. For example, the association may be accomplished eithermanually or automatically. Automatic association techniques may include,for example, a database search, a database merge, GREP, AGREP, SQL,and/or the like. The association step may be accomplished by a databasemerge function, for example, using a “key field” in pre-selecteddatabases or data sectors.

More particularly, a “key field” partitions the database according tothe high-level class of objects defined by the key field. For example,certain types of data may be designated as a key field in a plurality ofrelated data tables and the data tables may then be linked on the basisof the type of data in the key field. In this regard, the datacorresponding to the key field in each of the linked data tables ispreferably the same or of the same type. However, data tables havingsimilar, though not identical, data in the key fields may also be linkedby using AGREP, for example. In accordance with one aspect of thepresent invention, any suitable data storage technique may be utilizedto store data without a standard format. Data sets may be stored usingany suitable technique, including, for example, storing individual filesusing an ISO/IEC 7816-4 file structure; implementing a domain whereby adedicated file is selected that exposes one or more elementary filescontaining one or more data sets; using data sets stored in individualfiles using a hierarchical filing system; data sets stored as records ina single file (including compression, SQL accessible, hashed via one ormore keys, numeric, alphabetical by first tuple, etc.); block of binary(BLOB); stored as ungrouped data elements encoded using ISO/IEC 7816-6data elements; stored as ungrouped data elements encoded using ISO/IECAbstract Syntax Notation (ASN.1) as in ISO/IEC 8824 and 8825; and/orother proprietary techniques that may include fractal compressionmethods, image compression methods, etc.

In one exemplary embodiment, the ability to store a wide variety ofinformation in different formats is facilitated by storing theinformation as a Block of Binary (BLOB). Thus, any binary informationmay be stored in a storage space associated with a data set. Asdiscussed above, the binary information may be stored on the financialtransaction instrument or external to but affiliated with the financialtransaction instrument. The BLOB method may store data sets as ungroupeddata elements formatted as a block of binary via a fixed memory offsetusing either fixed storage allocation, circular queue techniques, orbest practices with respect to memory management (e.g., paged memory,least recently used, etc.). By using BLOB methods, the ability to storevarious data sets that have different formats facilitates the storage ofdata associated with the financial transaction instrument by multipleand unrelated owners of the data sets. For example, a first data setwhich may be stored may be provided by a first issuer, a second data setwhich may be stored may be provided by an unrelated second issuer, andyet a third data set which may be stored, may be provided by an thirdissuer unrelated to the first and second issuer. Each of these threeexemplary data sets may contain different information that is storedusing different data storage formats and/or techniques. Further, eachdata set may contain subsets of data which also may be distinct fromother subsets.

As stated above, in various embodiments of the present invention, thedata may be stored without regard to a common format. However, in oneexemplary embodiment of the present invention, the data set (e.g., BLOB)may be annotated in a standard manner when provided for manipulating thedata onto the financial transaction instrument. The annotation maycomprise a short header, trailer, or other appropriate indicator relatedto each data set that is suitably configured to convey informationuseful in managing the various data sets. For example, the annotationmay be called a “condition header”, “header”, “trailer”, or “status”,herein, and may comprise an indication of the status of the data set ormay include an identifier correlated to a specific issuer or owner ofthe data. In one example, the first three bytes of each data set BLOBmay be suitably configured or configurable to indicate the status ofthat particular data set; e.g., LOADED, INITIALIZED, READY, BLOCKED,REMOVABLE, or DELETED. Subsequent bytes of data may be used to indicatefor example, the identity of the issuer, user, transaction/membershipaccount identifier or the like. Each of these condition annotations arefurther discussed herein.

The data set annotation may also be used for other types of statusinformation as well as various other purposes. For example, the data setannotation may include security information establishing access levels.The access levels may, for example, be suitably configured to permitonly certain individuals, levels of employees, companies, or otherentities to access data sets, or to permit access to specific data setsbased on the transaction, merchant, issuer, user or the like.Furthermore, the security information may restrict/permit only certainactions such as accessing, modifying, and/or deleting data sets. In oneexample, the data set annotation indicates that only the data set owneror the user are permitted to delete a data set, various identifiedmerchants are permitted to access the data set for reading, and othersare altogether excluded from accessing the data set. However, otheraccess restriction parameters may also be used allowing various entitiesto access a data set with various permission levels as appropriate.

The data, including the header or trailer may be received by a standalone interaction device suitably configured to add, delete, modify, oraugment the data in accordance with the header or trailer. As such, inone preferred embodiment, the header or trailer is not stored on thetransaction instrument along with the associated issuer-owned data butinstead the appropriate action may be taken by providing to thetransaction instrument user at the stand alone device, the appropriateoption for the action to be taken. However, the present inventioncontemplates a data storage arrangement wherein the header or trailer,or header or trailer history, of the data is stored on the transactioninstrument in relation to the appropriate data.

One skilled in the art will also appreciate that, for security reasons,any databases, systems, devices, servers or other components of thepresent invention may consist of any combination thereof at a singlelocation or at multiple locations, wherein each database or systemincludes any of various suitable security features, such as firewalls,access codes, encryption, decryption, compression, decompression, and/orthe like.

The foregoing system components may be suitably configured forperforming the following method which may facilitate the distribution ofa transaction instrument. With reference to FIG. 2, an exemplary method200 may comprise one or more of the following steps: issuing atransaction instrument to a distributor (step 210), offering thetransaction instrument in a consumer accessible manner (e.g., at aretail establishment) (step 215), distributing the transactioninstrument to customers (step 220), sending a Fund/Init message (step225), sending sales confirmation information to the issuer (step 230),and/or processing the sales confirmation information (step 240) via, apre-existing infrastructure, for example, a Travelers Chequeinfrastructure.

In accordance with various exemplary embodiments of the presentinvention, issuing the transaction instrument to a distributor (step210) may include the step of creating the transaction instrument (step211). Creation of the transaction instrument may include both electronicand physical activities. For example, a card may be created physicallyand/or the related account created electronically. The transactionaccount may be created electronically by, for example, creating anaccount number that is associated with the transaction instrument. Theaccount number may be, for example, a credit card number or other numberas described herein. For security reasons, the account number may be arandom number and/or the account number may also include routinginformation prior to the random number. The account number may beassociated with other account specific information in a database, lookup table and/or the like. For example, in a stored value account, theaccount may be suitably configured to be worth a particular number ofminutes, a pre-determined value, a specific reward, and/or the like.

In addition to the account number, a serial number or any otheridentifier may be associated with the transaction instrument and/ortransaction account. In accordance with various exemplary embodiments,the serial number is a sequential number. The sequential number may,among other things, facilitate the tracking of inventory.

With regard to transaction instruments involving a physical transactioninstrument, the financial transaction instrument may comprise, forexample, a magnetic stripe card, smart card, bar code card, transponder,and/or the like. Issuer system 110 may provide a card account number anda serial number to a manufacturer that produces the physical transactioninstrument, encodes the instrument, and/or packaging for the transactioninstrument. The manufacturer may create, for example, a card. Themanufacturer may further package the card by inserting the card into anenvelope.

The packaged transaction instruments may be shipped to third-partypartner systems 120 and/or distribution centers which may provide thepackaged transaction instruments to distributor system 130. Issuing thetransaction instrument (step 210), in one exemplary embodiment, includesconsigning the transaction instrument to the distributor. For example,upon delivery, a distributor may sign a receipt acknowledgingresponsibility for the delivered set of pre-paid cards which may beindividually identified on the receipt. This receipt may be mailed,faxed, or electronically transmitted to the issuer to confirm receipt ofthe pre-paid cards. In other exemplary embodiments, issuing thetransaction instrument includes selling and/or consigning thetransaction instrument (or the right to distribute the same) to thedistributor. One skilled in the art will appreciate that thedistribution centers may not be necessary. For example, the transactioninstruments may be distributed directly to consumers. The distributormay also add the product to their own inventory system.

The distributor may offer (step 215) the transaction instrument toconsumers using various techniques. For example, a merchant may hangpackaged pre-paid open cards on a rack near a check out counter.Similarly, pre-paid open cards may be displayed on a shelf, or othersuitable display device. Thus, offering the transaction instrument in aconsumer accessible manner comprises any method of making physicallyaccessible to a consumer the acquisition of a transaction instrument.For example, a physical package or card is displayed within reach of acustomer. Thus, a customer may select (i.e., physically acquire), forexample, a pre-denominated open card from a rack of cards, and proceedto purchase the card along with other groceries or products selected bythe consumer. In one embodiment, the account number or cards may bedistributed via a kiosk, computer terminal, ATM (e.g., on an ATMreceipt) or over the phone. For additional information related todistribution of an account number, see for example, U.S. Ser. No.08/456,525 filed on Jun. 1, 1995 by inventor John M. Taskett andentitled METHODS AND APPARATUS FOR PROVIDING A PREPAID, REMOTE ENTRYCUSTOMER ACCOUNT, which is hereby incorporated by reference.

Furthermore, the transaction instruments may be distributed from behindthe counter using the Fund/Init message. In yet another exemplaryembodiment, a transaction instrument may be distributed via the internetusing a Fund/Init message.

The distributor may distribute the transaction instrument (step 220)using various techniques. For example, the distributor may sell thetransaction instrument to customer 140. However, the distributor maygive the transaction instrument to a customer for free or even entice acustomer to obtain the transaction instrument in exchange for value. Forexample, a merchant might offer incentives, such as T-shirts, lowinterest rates, or other rewards with each credit card that isdistributed to customer 140. Other techniques for distributing thetransaction instrument may also be used.

Distributing the transaction instrument (step 220) may further comprisethe step of obtaining an identification number from the package and/ortransaction instrument. The identification number may identify or relateto the associated transaction account of the transaction instrument thatis being purchased or the transaction instrument itself. In oneexemplary embodiment, the identification number is a serial number thatis manually read off the package or card and typed in by hand, or thatis machine read from a bar code or magnetic stripe on the package or thecard. The serial number may be compared to a database containinginventory information. It may thus be determined that, for example, a$25 gift card is being presented for purchase. In one embodiment, thedatabase may return a price to charge for the selected card, e.g.,$27.95.

Distributing the transaction instrument (step 220) may additionallyinclude the step of sending a Fund/Init message to issuer system 110,for example, upon purchase of the transaction instrument (step 225). TheFund/Init message may include information that causes issuer system torecognize the message as representing a request to sell a selectedtransaction instrument. Issuer system 110 may process the request, andif appropriate, send an approved/authorized message to distributorsystem 130. Issuer system 110 may also update its database(s) to notethat the specified transaction instrument is sold. Issuer system 110 mayalso update its database(s) to note that the transaction accountassociated with the specified transaction instrument is funded.Distributing the transaction instrument (step 220) may additionallyinclude the steps of receiving the approved/authorized message, andtransferring ownership of the transaction instrument to the consumer.However, at this time, the transaction account associated with thepurchased transaction instrument may be funded but not activated.

The transaction account may be funded at the point of sale. However, thetransaction account may, in other embodiments be funded at a later pointin time. For example, the account may be funded when a batchtransmission is processed (e.g., that night). Nevertheless, in exemplaryembodiments, the account is not activated at the time of funding.

Distributing the transaction instrument (step 220) may, for example,also include verification of a predetermined finding level. In oneexemplary embodiment, a pre-paid card is pre-denominated for a specificamount (e.g. $50). Merchant 130 may communicate to the issuer, amongother things, the amount of the pre-denominated card. This may becommunicated, for example, in the Fund/Init signal. If thepre-denominated amount communicated by the merchant does not match thepre-denominated amount associated with that transaction account (in theissuer's database), the issuer may not approve the sale and/or fundingof the card.

In some exemplary embodiments involving a third-party partner, theprimary contact with the merchant is through the third-party partner.Thus, the merchant system is suitably configured, in this case, to senda signal to third-party partner system 120. Third-party partner system120, in turn recognizes the signal as a request to distribute atransaction instrument, and translates the serial number and/or cardnumber (accompanying or included in the signal) to a correspondingissuer account number or serial number, which is forwarded bythird-party partner system 120 to issuer system 110 with a Fund/Initmessage. Approval/authorization of the distribution of the transactioninstrument is similarly sent to third-party partner system 120 to beconverted and/or conveyed back to merchant system 130.

The direct, or indirect, distribution of the transaction instrument mayfurther involve the collection of “sales confirmation” data. Step 221.This sales confirmation information may be collected by the distributor(e.g., a merchant), by the third-party partner system, or through othermeans. Furthermore, this sales confirmation information may be collectedat the time of sale, immediately after the sale, or at a later point intime. The sales confirmation information may include, for example thedate of the sale, the time of the sale, the card number, an associatedserial number, the face value of the pre-paid card, the approval codefor the distribution of the transaction instrument, and/or the like. Inan exemplary embodiment, the sales confirmation information is capturedat the time of sale, and is sent via batch processing to the issuer at alater time, such as later that night.

All or any portion of this sales confirmation data may be communicatedto the issuer system (step 230). In one embodiment, sales confirmationinformation may include the Fund/Init signal. In various exemplaryembodiments, the sales confirmation information may facilitatecorrelating a request to sell a transaction instrument with theappropriate account number. For example, the sales confirmationinformation may be transmitted to the issuer system and it may includean account number. In one exemplary embodiment, the account numbercomprises at least a portion of a machine readable code, such as a barcode. In another example, the account number may be stored in a magneticstripe encoded format. Distributor system 130 may be suitably configuredto recognize the codes and, based on the codes, to determine the accountnumber that corresponds to the codes, the amount that the distributorowes to the issuer, and/or the like. In other exemplary embodiments, theaccount number may be entered into an electronic system manually or byother means (bar code, machine readable code, etc.)(step 232). Forexample, an internet webpage based system may be suitably configuredwith fields for manual or automatic entry of an account number as wellas other information comprising the sales confirmation information. Thefields may, for example, be similar to fields used in connection withdistributing Travelers Cheques; however, other formats may also be used.The American Express “Express Check” software is one example of such asystem. Moreover, the internet webpage may be suitably configured totransmit/communicate sales confirmation information to an issuer inother suitable formats.

The sales confirmation information may be stored and transmitted inbatches, or transmitted in substantially real time. A batch transmissionof sales confirmation information may, for example, include severaltransactions including various products, individual transactioninformation, and/or summary information. For example, a single batchtransmission may comprise the transmission of a file containing asummary of amounts the distributor owes to the issuer, the total numberof pre-paid cards sold, and sales confirmation information specifyingthe account number of the sold pre-paid cards. This information may betransmitted to the issuer as a settlement file. In another exemplaryembodiment, the sales confirmation information is communicated to issuersystem 110 via the internet or other suitable communication systems. Theissuer receives the sales confirmation information and may process theinformation (step 240).

Processing of the sales confirmation information may take place througha combination of systems that may already be established at issuersystem 110. For example, issuer system 110 may comprise a transactionaccount infrastructure (e.g., a pre-paid card infrastructure), apre-existing inventory system and/or a pre-existing financial settlementprocessing system. In one exemplary embodiment, issuer system 110 maycomprise, a pre-paid card infrastructure that is suitably configured toreceive and process the sales confirmation information. For example, thepre-paid card infrastructure may be configured to match the salesconfirmation information with the Fund/Init message and to transmit datato a pre-existing inventory system and/or a pre-existing financialsettlement processing system. The pre-existing inventory system may, forexample, utilize serial number logic.

Moreover, through the pre-existing financial settlement processingsystems, issuer system 110 may pay the distributor a commission for thedistribution of the transaction instrument (step 250). In accordancewith one exemplary embodiment of the present invention, the commissionpayment system may be similar to that used in paying commissions forsales of Travelers Cheques, although other systems may also be used.Also, a pre-existing inventory system may perform inventory managementand accounting related to the distribution of a transaction instrument.Thus, as an example, a pre-paid card infrastructure may receive salesconfirmation information, match that information with the Fund/Initmessage, and provide data to a Travelers Cheque infrastructure thatperforms inventory and settlement functions. Thus, financial transactioninstrument distribution system 100 may be suitably configured toleverage the functions and services of pre-existing Travelers Cheque,ATM, POS and/or transaction account infrastructures by receivingcommunications through pre-paid card, Travelers Cheque, POS and/or ATMcommunication systems and sharing information between infrastructures.

In accordance with yet another exemplary embodiment of the presentinvention, issuer system 110 may be suitably configured to activate thetransaction account (step 260). Various methods of activating thetransaction account may be used, including, for example, automatedactivation systems such as web based activation systems, interactivevoice response systems, and/or the like, and non automated activationsystems such as customer service representatives, and/or the like. Thepurchaser of a pre-paid card, for example, may call a customer servicerepresentative or an interactive voice response system associated with apre-paid card infrastructure to activate the pre-paid card. In oneexemplary embodiment, if the transaction account associated with atransaction instrument has been flagged as “sold”, the IVR system issuitably configured to honor a request to immediately activate thetransaction account. Thus, a newly purchased open pre-paid card may beused sooner, encouraging consumers to purchase the cards.

In other exemplary embodiments, the issuer system (for example, thepre-paid card system) may be suitably configured to verify thatactivation is appropriate. For example, the infrastructure may besuitably configured to verify that this particular card has been sold.Furthermore, the purchaser may be asked to provide informationincluding, but not limited to: the card number, security code on thecard, their date of birth, the last four digits of their social securitynumber, and/or the like for the purposes of confirming that activationis appropriate. The direct, or indirect, distribution of the transactioninstrument may further involve collecting information from the customer.The customer information may include, for example, the customer name,password, social security number, birth date, survey information,loyalty program information and other personal identificationinformation, and/or the like. This customer information may be collectedfrom the customer by the distributor (e.g., a merchant) or through othermeans (e.g., internet, call centers, and/or the like). Furthermore, thiscustomer information may be collected at the time of sale, immediatelyafter the sale, or at a later point in time.

The infrastructure may further be suitably configured to detect fraud(e.g., detect an attempt to use a card that has not yet been sold), torefund or replace a lost transaction instrument, to track productinventory, to know when and how much to pay sellers as a commission, andto collect from sellers for the consignment sale. For example, ifcustomer 140 reports a transaction instrument as lost or stolen, theissuer may determine if that transaction instrument was sold, where itwas sold, etc. and thereby ask the customers questions to determine ifthe customer is entitled to a refund. Collection of customer informationmay also take place during this activation process.

FIG. 4 illustrates an exemplary system 400 that is suitably configuredto facilitate the distribution of a transaction instrument. System 400combines an exemplary Travelers Cheque infrastructure 410 and anexemplary transaction account infrastructure 420. Various pre-existinginventory and financial settlement infrastructures (e.g., TravelersCheque infrastructures) and transaction card infrastructures may be usedin system 400, and therefore the details of infrastructures 410 and 420are not explained in detail. In one exemplary embodiment, transactionaccount infrastructure 420 may be a pre-paid card infrastructuresuitably configured with an interactive voice response systemfacilitating consumer activation. Transaction account system 420 may besuitably configured to provide card numbers to a matching table and tocommunicate with the matching table, providing new functionality 430.Travelers Cheque infrastructure 410 may be suitably configured toprovide Travelers Cheque numbers and/or sales and inventory statusinformation to a matching table. Thus, the matching table may facilitatecard production and packaging. The newly produced inventory may then bepassed to an inventory shipping process within Travelers Chequeinfrastructure 410 and infrastructure 410 may, for example, facilitatethe distribution of the pre-paid cards. Various other links andcommunication of information between infrastructures 410 and 420 mayalso be used to facilitate distribution of transaction instruments.

From the issuer's perspective, in accordance with various aspects of thepresent invention, an issuer is able to facilitate the distribution oftransaction instruments. The issuer creates the transaction instruments,issues the transaction instruments to a distributor, receivesinformation back from the distributor upon distribution of thetransaction instrument, and processes the information received. Theissuer finds the transaction account upon sale, and activates thetransaction account via, for example, an IVR system. In one exemplaryembodiment, the information is received by the issuer's Travelers Chequeinfrastructure and processed by the issuer's Travelers Cheque and/ortransaction account infrastructure(s). Thus, the issuer leverages one ormore existing systems to distribute transaction instruments.

From the distributor's perspective, in accordance with another aspect ofthe present invention, a distributor may distribute a transactioninstrument using existing systems and sales techniques that aretypically used to distribute merchandize in stores. For example, thedistributor may receive a shipment of a box of pre-paid open type cards,each in a package that facilitates presenting the pre-paid cards. Thepackages may each contain, for example, a pre-paid card, and may bearidentifying indicia, such as an account number or serial number. Theaccount/serial number may facilitate, for example, tracking ofinventory.

The distributor may place the pre-paid cards on a shelf, on a rack, orsimilar display, and allow customers to self select desired products. Ifthe customer selects a gift card from the rack and presents it forpurchase, the distributor may obtain customer information and may scanthe package using the same optical scanner that is typically used forreading UPC codes to scan in the sale of other products. Thedistributor's computer is suitably configured to send a Fund/Initmessage to the issuer, and receive back an authorization. In variousexemplary embodiments of the present invention the distributor receivespayment for the transaction. In this example, the pre-paid card is givento customer 140 in connection with the transaction. Sales confirmationinformation may be batch transmitted, for example, at the end of theday. Thus, with minimal additional processes or investment intechnology, the distributor may earn commissions or realize otherincentives for distribution of additional product, e.g., a pre-paidcard.

From the customer's perspective, in accordance with yet another aspectof the present invention, a customer obtains the benefit and convenienceof obtaining a pre-paid open card through, for example, a local grocerystore. The transaction instrument, e.g., prepaid card, may be displayedin a customer accessible manner. For example, a customer accessiblemanner may comprise any method of displaying a transaction instrument(e.g. pre-paid card) where the customer can physically select thetransaction instrument or a device representing the same. The customercould also, however, obtain the pre-paid card in-person, over thetelephone, on line, and/or the like. For example, a customer may enter ahardware store to purchase a product. At the check out stand, thecustomer sees a pre-paid card of a specific denomination and adds thatto the items to be purchased. The customer may pay for the pre-paidcard. The customer may then activate the card by calling a number on thecard. During activation, the customer may provide the purchase locationor other customer related information. Thus, the customer could use thecard within minutes of purchasing the card.

An exemplary pre-paid card is the Gift Card by American Express. Thisproduct allows someone to load, for example, $25, $50, $100, or $500onto a card and then give it to the gift recipient. The gift recipientmay then buy merchandise on the card at any retailer or restaurant thataccepts American Express. This exemplary Gift Card facilitates giving agift that may be used at millions of merchants in contrast to a singlestore gift certificate/card, which has limited use. This system could bealso be used with providers other than American Express and on variousfinancial instruments.

With reference now to FIG. 3, an exemplary transaction instrumentdistribution device 300 is suitably configured to facilitatedistribution of a card or an account number by a distributor.Transaction instrument distribution device 300 may include a card 310and a package 320. As discussed above, the “card” may simply be anaccount number, or an account number printed or encoded on any medium.Package 320, in accordance with exemplary embodiments, may be associatedwith card 310 when issued to the distributor.

Card 310 may include one or more physical devices used in carrying outvarious financial transactions. For example, card 310 may comprise apre-paid card, rewards card, telephone card, smart card, magnetic stripecard, radio frequency card and/or the like. In yet another exemplaryembodiment of the present invention, card 310 may be an electroniccoupon, voucher, speed pass, and/or other such instrument. Card 310 maybe used to pay for acquisitions, obtain access, provide identification,pay an amount, receive payment, redeem reward points and/or the like.

Card 310 may be associated with an account number/card number.Furthermore, an “account number”, “card number”, “code”, “identifier” or“loyalty number”, as used herein, includes any device, code, or otheridentifier/indicia suitably configured to allow the consumer to interactor communicate with the system, such as, for example,authorization/access code, personal identification number (PIN),Internet code, other identification code, and/or the like that isoptionally located on a rewards card, pre-paid card, telephone card,smart card, magnetic stripe card, bar code card, radio frequency cardand/or the like. The account number may be distributed and stored in anyform of plastic, electronic, magnetic, radio frequency, audio and/oroptical device capable of transmitting or downloading data from itselfto a second device.

An account number may be, for example, a sixteen-digit card number,although each card provider has its own numbering system, such as thefifteen-digit numbering system used by an exemplary loyalty system. Eachcompany's card numbers comply with that company's standardized formatsuch that the company using a sixteen-digit format may generally usefour spaced sets of numbers, as represented by the number “0000 00000000 0000”. The first five to seven digits are reserved for processingpurposes and identify the issuing bank, card type and etc. In thisexample, the sixteenth digit is used as a sum check for thesixteen-digit number. The intermediary eight-to-ten digits are used touniquely identify the customer. In addition, loyalty account numbers ofvarious types may be used.

In accordance with various exemplary embodiments of the presentinvention, serial number 330 is suitably configured to be related to aTravelers Cheque type number or a portion thereof. Thus, the serialnumber may be used in a system that otherwise is suitably configured forthe sale of Travelers Cheques. Thus, the serialized number may bemachine read from the surface of, for example, package 320, and salesconfirmation information may be conveyed to issuing system 110.

Package 320 may comprise any suitable device that facilitates accessiblyoffering the transaction instrument to a consumer. For example, package320 may simply comprise a peel off hook 350 attached to a card or anenvelope or a cut-out to be placed on a hook. Furthermore, package 320may comprise an envelope that wholly or partially surrounds atransaction instrument, such as a card. In one embodiment, package 320conceals the account number associated with transaction instrument 310.In further embodiments, package 320 may comprise one or more windows forviewing or reading a bar code or magnetic strip on a card without theneed to remove the card from the envelope. Moreover, the revealedportion may include or correspond to the serial number. Thus, the cardmay be packaged in a manner that the serial number is exposed and/orreadable even when the card is packaged and/or that a bar code is on theoutside of the package relating to the sequenced card number of a thirdparty program partner. As illustrated in FIG. 3, in one exemplaryembodiment, package 320 may also have indicia, e.g., an account orserial number, in the form of a bar code or magnetic strip, on thepackage itself. With regard to embodiments lacking a physicalinstrument, package 130 may be associated with a transaction account,for example, by providing a tangible object containing a transactionaccount number.

It is noted that the serial number may be the identification number ofthe third-party partner or of the issuer. In one embodiment, the variousprocesses may include a user facilitating the input of information intoa computer system. The information may be inputted via keypad, bar codereader, magnetic stripe, smart card, electronic pointer, touchpad and/orthe like, into a user computer, POS terminal, kiosk, and/or ATMterminal. The information may be transmitted via any network.

In accordance with various exemplary embodiments of the invention, areverse inventory management system is configured to ‘locate’ a group offinancial transaction instruments after at least one of the financialtransaction instruments in that group has been sold. Although primarilydescribed herein in terms of financial transaction instruments, and moreparticularly in terms of financial transaction cards (“cards”), thedescription herein is equally applicable to other financial transactioninstruments and to account numbers associated with financial transactionaccounts.

In this regard, a retail sale or retail distribution refers to thedistribution to the end user of the financial transaction instrument asopposed to the distribution or transfer of the financial transactioninstrument down through the distribution chain (e.g., from the issuerdown to the distributor who provides the financial transactioninstrument to the end user). In addition, a distributor may havesub-entities to which financial transaction instruments are distributedand who may distribute the cards. For example, inventory may beassigned, in bundles, to various clerks, kiosks, departments, and/orlike entities within a mall or department store.

As mentioned above, distributor system 130 may communicate informationwith issuer system 110 (directly or indirectly). In one exemplaryembodiment, the information communicated includes the consumer name, anaccount number, a sequential number, the date of distribution of thetransaction instrument, the time of distribution, the place ofdistribution, the name of the sales clerk, the entity responsible forthe distribution, the type of transaction instrument distributed, and/orthe like. The communicated information may be useful for reversetracking of inventory as described further herein.

In general, an exemplary method comprises the steps of producing thecards, grouping a number of cards, associating the cards with each otherand/or the group, keeping the card group together during the process ofdistributing the card groups to the merchants, distributing at least oneof the cards in the card group, and recording in inventory the locationof the remaining cards of that group after a card in that group is firstdistributed.

In accordance with another exemplary embodiment, and with reference toFIG. 5, a reverse inventory method 500 may comprise the steps ofproducing financial transaction instruments, physically grouping morethan one financial transaction instruments (step 530), distributing thegroup of financial transaction instruments (step 540), associating thegrouped financial transaction instruments with each other (step 550),receiving information related to the distribution of a financialtransaction instrument (step 560), and determining the location of otherfinancial transaction instruments that are in the same group as thefinancial transaction instrument that was distributed (step 570).

Distribution of financial transaction instruments includes thedistribution of account numbers, which are associated with financialtransaction accounts. For example, an account number may be written on apaper that is distributed and later purchased. Although the inventioncontemplates all forms of distribution of financial transactioninstruments and account numbers, for simplicity, an exemplary embodimentof the invention is described herein in terms of a distribution of apre-paid card or a credit/charge card (a “card”).

The issuer of a card may produce the card and/or packaging associatedwith the card. This may be accomplished, for example, throughthird-party production vendors (e.g., Oberthur Card Systems). The cardsmay be individually packaged, although in other embodiments, one, two,or more cards may be packaged for retail sale together (‘retail salepackage’). However, in various exemplary embodiments, the retail salepackage comprises just the card itself. In one exemplary embodiment, acard may be placed in a cardboard or plastic container that isconfigured to securely hold the card and/or conceal all or portions ofthe card. In other embodiments, a hook may be removably attached to thecard. Furthermore, many other packaging methods may be used to preparethe cards for distribution.

Similarly, other types of financial transaction instruments may besuitably packaged for retail sale. For example, an account numberassociated with a financial transaction account may, for example, beprinted on a paper or other object that is packaged for retail sale. Asdescribed in greater detail herein, the financial transactioninstruments and/or retail packages may be associated with identifiers(steps 510 and 520). This association may be partially or completelyproduced by the production vendor, the issuer system, and/or bothsystems working together.

The individual retail sales package is configured to be uniquelyidentifiable. Thus, a unique identifier is associated with each retailsales package. The unique identifier may be formed of numbers, letters,symbols, and/or the like. In other exemplary embodiments, the uniqueidentifier is a serial number. For example, the serial numbers may besequential numbers within each distribution group of individual retailsales packages. However, it is noted that in some embodiments, theunique identifier may be a random number associated with the retailsales package. Typically, the unique identifier is a separate identifierfrom the account number associated with the financial transactionaccount, financial transaction instrument, or debit/credit card.However, in one embodiment, the unique identifier is the account number.

For simplicity, the unique identifier is described herein as beingassociated with the card. However, the unique identifier may beassociated with at least one of the individual retail sales package,with the card, or other packaged object. Furthermore, the uniqueidentifier (or any other identifier discussed herein) may be in the formof a printed indicia, bar code, electronic identifier (e.g., on a smartcard, coded in a transponder), stored on a magnetic stripe, and/or thelike. In other embodiments, the unique identifier is printed on the cardor package. In accordance with another exemplary embodiment of theinvention, a unique group identifier may be associated with eachdistribution group (as described herein).

In one exemplary embodiment, the cards are each configured to have aserial number. For example, the cards may have a serial number printedon the surface of the card. In another example, the serial number may beincorporated into the magnetic stripe or stored in a machine readablemanner on the card. Furthermore, the serial number may be a sequentialnumber such as, for example, Traveler's Cheque numbers. The uniqueidentifier, account number, unique group identifier, number of cards inthe group, and/or like information may be stored in a database, look uptable, and or the like.

In accordance with one exemplary embodiment of the invention, theindividual retail sale package is grouped together with other individualretail sale packages. The groups (or bundles) may comprise two or morepackages. Although any number of individual retail sale packages maycomprise a group of cards, in one embodiment, 25 individual retail salepackages are packaged together to form a group (“distribution group”).Moreover, the number of retail sale packages in a bundle may vary frombundle to bundle. The number of cards in a bundle may be varied, forexample to suit a specific retailer's requirements. Furthermore, thetype of card or package may vary within the bundle or from bundle tobundle. For example, one bundle may contain a variety of packages eachholding one, two, or six cards. In another example, one bundle maycontain retail packages each containing one card and another bundle maycontain retail packages each containing two cards. Similarly, thevaluation of prepaid cards and other similar types of information mayvary from package to package or from bundle to bundle, and/or the like.

The production vendor may be configured to ship a bundle (distributiongroup) of cards directly to issuer 110, or to third-party distributionvendor 120. System 100 may further be configured to transfer/distributethe bundles through a distribution chain to the retail distributor. Withmomentary reference to FIG. 6, an exemplary distribution chain isillustrated as having a production vendor 610, a distribution unit 620,a sub-distribution unit 622, a sub-sub-distribution unit 624, a retaildistribution center 634, and stores 630. In accordance with variousexemplary embodiments of the invention, issuer 110, third-partydistribution vendor 120, distribution center 634, and/or a combinationof these entities may transfer/distribute the bundles/groups through adistribution chain to retailers, stores, merchants, and/or the like(“retailers”). One exemplary third party distribution vendor is Incomm.The distribution vendor(s) may transfer/distribute the card bundlesintact through out the supply chain/stages of distribution to retailers.

For example, production vendor 610 may ship several bundles todistribution unit 620 which may in turn ship a portion of those bundlesto sub-distribution units 622. Sub-distribution unit 622 maytransfer/distribute a portion of the bundles it receives tosub-sub-distribution unit 624. Any of these distribution entities (e.g.,610, 620, 622, and/or 624) may be configured to transfer/distribute aportion of the bundles they posses to stores or to a retail distributioncenter 634 related to stores 630. Although described herein as a store,the store may be any entity as described with respect to distributionsystem 130 and merchants herein.

Upon receipt of a bundle of cards at a retail selling location, in oneexemplary embodiment, the bundle is opened and the individual retailpackages are displayed via merchandise stands, racks, counters, and/orthe like, for distribution to consumers. In yet another embodiment, thecard bundles received by a retailer may be transferred/assigned, intact,to a particular department, check out stand, sub-entity, kiosk,employee, and/or the like associated with the retailer. In that example,upon reaching the location associated with the retailer, the bundle maybe opened and the individual retail packages may be offered tocustomers. For example, a store may transfer intact bundles toparticular locations 631 within the store, to specific clerks 632 withinthe store, or to managers/assistant managers (e.g., 633 and 634) withinthe store. The managers/assistant managers may further transfer thebundles. Thus, identifying the location of a financial transactionaccount/retail sale package may include determining the physicallocation of the retail sales package and/or card. Furthermore,identifying the location of a financial transaction account/retail salepackage may include identifying the name of the store, theidentification of the clerk, the identification of the manager/assistantmanager, the department, the point-of-sale terminal, the building, thecountry, and/or the entity responsible for the retail distribution ofthe financial transaction account, and/or in possession thereof.

Typically, the individual retail packages are sold to the consumers.However, as described herein, the packages may be given away aspromotional devices, or may be distributed to consumers in other ways.Furthermore, as described herein, an individual retail sale package maybe offered to the consumer in a publicly accessible manner, for example,in high foot traffic areas of the store, and/or within reach of thecustomers. In other examples, the card is held behind the customerservice desk.

In various embodiments, the financial transaction instruments are openfinancial transaction instruments. As described herein, the ability totrack these instruments to the point of sale/point of distribution tocustomers may facilitate enhanced security and fraud prevention.Furthermore, the ability to track these cards may facilitate re-claim ofexpired/expiring cards. Thus, the methods and systems for retroactivelytracking financial transaction instruments may facilitate providingthese instruments to customers in a customer accessible environment, andmay thus enhance the distribution of the financial transactioninstruments.

When an individual retail package is sold/distributed to a customer, orduring the process thereof, the unique identification number associatedwith that individual retail package is communicated to the issuer. Thisinformation may be communicated directly to issuer 110, or by way ofintermediate processing. For example, third-party distribution partner120 may receive the information and pass the information along to theissuer. In one example, a serial number associated with the individualretail package may be communicated to third-party distribution partner120, which may be configured to translate and/or pass that informationalong to issuer 110 (step 560). This information may be communicated,for example, with the reconciliation file, as a batch process, and/orthe like.

Based on this unique identification number, and or other informationthat is commonly provided with such communications/reconciliation files,the reverse inventory management system may be configured to determinethe location of other the cards associated with that the distributedcard's group.

Reverse inventory management system 100 may also be configured todetermine whether a card is sold or unsold, at a particular retailer, ata particular sub-entity associated with that retailer, and/or the like(“inventory status”). Reverse inventory management system 100 may alsobe configured to identify all of the individual retail packages (or allof the remaining un-distributed individual retail packages) that areassociated with the bundle to which one unique identification numberbelonged. Thus, the reverse inventory management system is based on thedistribution of at least one card, out of a group of cards, and theassumption that all other cards associated with the same group as thatone card are at the same location.

Information communicated to an issuer indicating that one card has beensold (and the location of that sale) may be used to identify all othercards that were also in that bundle. For example, each card's uniqueidentification number may be associated with the unique ID of everyother card, for example in a database/look-up table. By searching thedatabase using the unique ID of the card first sold of a bundle ofcards, the system may determine/identify the unique ID numbers of all ofthe cards that are associated with that bundle. It may be assumed thateach of the cards in that bundle, or each of the cards remaining in thatbundle, are at that location. In this manner, the inventory dataassociated with of each card may be updated to reflect the inventorystatus (e.g., location) of that card.

In another exemplary embodiment, a bundle identifier may beelectronically associated with each serial numbered card. Thus, when onecard is sold, the serial number of the sold card can be used in adatabase/look-up table to identify the bundle of which it was a part,and then that bundle identifier can be used to look up all the cardserial numbers that were also associated with that bundle.

In yet another exemplary embodiment, a sequential serial number may beassociated with each card in a group of, for example, 10 cards. In thisexample, the number of cards in the group and the starting serial numberfor that group are stored in a database. Therefore, when a card is sold,the system is configured to determine to which group the sold cardbelongs. For example, when the first card in the group is sold, thecard's unique identification number is identical to an identificationnumber in a database or look up table. Otherwise, the sold card uniqueidentification number may be within 10 of the first number of the group.For example, the system may add or subtract any number between 1 and 10from the identification number, then compare the result to anidentification number in the table. When a card of that group is firstsold, the system may update the record of each card to reflect itsinventory status. In one embodiment, the system may update theapplicable group's inventory status.

With sequential numbered cards, it may be convenient to only store theserial number of the first card in the bundle and the number of cards inthe bundle. Thus, in yet another exemplary embodiment, the uniqueidentification number may correspond to a unique group ID number and thesystem is configured to determine the group ID number based on theunique ID number of the first sold card. The group ID number is thenupdated to reflect the inventory status of the group. The location ofindividual cards may be determined by reference to the location of itscorresponding group. Furthermore, other methods may also be used whereinthe distribution of one card in a group of cards makes possible trackingand inventory functions with respect to all of the other cards in itsgroup.

As described herein, Travelers' Cheque systems or other pre-existingserial number based inventory systems, and other transaction instrumentsystems may already be configured to perform inventory functions. Theutility of these systems may be leveraged by providing the abovedetermined location information to these pre-existing inventory systems.

In accordance with various exemplary embodiments, each time a card issold, the inventory status may be updated. Thus, the system may beconfigured to track changes in the inventory status (“dynamic inventorytracking”). For example, the system may be programmed to alert theissuer if part of a group of cards is distributed by one retailer andthen part of the group is distributed by another retailer. The systemmay also be configured to record the location of each card sold forinventory and fraud prevention reasons. Thus, the system is configuredto perform tracking of specific serialized inventory down to the storelevel or lower for purpose of loss control and inventory management(obsolete product recall, changing terms and conditions, expiredproduct, etc.) In addition, system 100 may be configured to modify thelocation of all the remaining cards/retail sale packages. In thismanner, if inventory moves from one location to another, the inventorystatus may be updated.

One of the benefits of the invention is that it may tend to increase anissuer's prepaid card business. The inability to track and performinventory management on cards may be one barrier to distributing theproduct in open retail environments with enormous foot traffic and salespotential. The reverse inventory management system may also facilitatedetailed tracking of specific serialized prepaid cards down to thespecific selling location level for purposes of loss control andinventory management. Other benefits may include the lowering ofoperating expenses. For example, reverse inventory management processesmay reduce fraud losses and operational costs related to inventorymanagement. The reverse inventory management system may increase thequantity/quality or performance of the issuer's existing services. Forexample, the reverse inventory management system may improve the abilityfor the issuer to service the needs of its selling partners and its endcustomers for these products. The reverse inventory management systemmay also facilitate selling of cards through a check-out lane andcontrolling/reducing associated losses and costs. In addition, thereverse inventory management systems and methods may be configured toleverage pre-existing travelers Cheque inventory systems and/or otherserial number based pre-existing inventory systems.

Furthermore, the reverse inventory management system may be advantageousto retailers because in some cases, fraud losses on unsold/inactivecards presented and honored under floor limits at the acceptingmerchants can be traced back and charged to fraud at the originalstocking location. In addition, third party sellers may be able toreduce the amount of additional cost and effort involved to meet issuerrequirements for tracking and managing inventory. The reverse inventorymanagement system may facilitate inventory management without additionalprocess or systems at the distribution vendors or at the retail level.Furthermore, it may facilitate integration of shipping and receivingfinancial transaction products and similar products in order to reducehandling and merchandising overhead.

Moreover, the reverse inventory management system may be advantageous tocustomers. For example, customers that have accidentally walked awayfrom the retail selling location without completing the salestransaction for their card can be directed back to the appropriateoriginal stocking location to remedy the oversight.

The present invention may be described herein in terms of functionalblock components, optional selections and/or various processing steps.It should be appreciated that such functional blocks may be realized byany number of hardware and/or software components suitably configured toperform the specified functions. For example, the present invention mayemploy various integrated circuit components, e.g., memory elements,processing elements, logic elements, look-up tables, and/or the like,which may carry out a variety of functions under the control of one ormore microprocessors or other control devices. Similarly, the softwareelements of the present invention may be implemented with anyprogramming or scripting language such as C, C++, Java, COBOL,assembler, PERL, Visual Basic, SQL Stored Procedures, extensible markuplanguage (XML), with the various algorithms being implemented with anycombination of data structures, objects, processes, routines or otherprogramming elements. Further, it should be noted that the presentinvention may employ any number of conventional techniques for datatransmission, messaging, data processing, network control, and/or thelike. Still further, the invention could be used to detect or preventsecurity issues with a client-side scripting language, such asJavaScript, VBScript or the like. For a basic introduction ofcryptography and network security, the following may be helpfulreferences: (1) “Applied Cryptography: Protocols, Algorithms, And SourceCode In C,” by Bruce Schneier, published by John Wiley & Sons (secondedition, 1996); (2) “Java Cryptography” by Jonathan Knudson, publishedby O'Reilly & Associates (1998); (3) “Cryptography & Network Security:Principles & Practice” by Mayiam Stalling, published by Prentice Hall;all of which are hereby incorporated by reference.

It should be appreciated that the particular implementations shown anddescribed herein are illustrative of the invention and its best mode andare not intended to otherwise limit the scope of the present inventionin any way. Indeed, for the sake of brevity, conventional datanetworking, application development and other functional aspects of thesystems (and components of the individual operating components of thesystems) may not be described in detail herein. It should be noted thatmany alternative or additional functional relationships or physicalconnections might be present in a practical transaction instrumentdistribution system.

As may be appreciated by one of ordinary skill in the art, the presentinvention may be embodied as a method, a data processing system, adevice for data processing, a financial transaction instrument, and/or acomputer program product. Accordingly, the present invention may takethe form of an entirely software embodiment, an entirely hardwareembodiment, or an embodiment combining aspects of both software andhardware or other physical devices. Furthermore, the present inventionmay take the form of a computer program product on a computer-readablestorage medium having computer-readable program code means embodied inthe storage medium. Any suitable computer-readable storage medium may beutilized, including hard disks, CD-ROM, optical storage devices,magnetic storage devices, and/or the like.

These computer program instructions may also be stored in acomputer-readable memory that may direct a computer or otherprogrammable data processing apparatus to function in a particularmanner, such that the instructions stored in the computer-readablememory produce an article of manufacture including instruction meanswhich implement functions of flowchart block or blocks. The computerprogram instructions may also be loaded onto a computer or otherprogrammable data processing apparatus to cause a series of operationalsteps to be performed on the computer or other programmable apparatus toproduce a computer-implemented process such that the instructions whichexecute on the computer or other programmable apparatus include stepsfor implementing the functions specified in the flowchart block orblocks.

In the foregoing specification, the invention has been described withreference to specific embodiments. However, it may be appreciated thatvarious modifications and changes may be made without departing from thescope of the present invention. The specification and figures are to beregarded in an illustrative manner, rather than a restrictive one, andall such modifications are intended to be included within the scope ofpresent invention. Accordingly, the scope of the invention should bedetermined by the appended claims and their legal equivalents, ratherthan by the examples given above. For example, the steps recited in anyof the method or process claims may be executed in any order and are notlimited to the order presented.

Benefits, other advantages, and solutions to problems have beendescribed above with regard to specific embodiments. However, thebenefits, advantages, solutions to problems, and any element(s) that maycause any benefit, advantage, or solution to occur or become morepronounced are not to be construed as critical, required, or essentialfeatures or elements of any or all the claims. As used herein, the terms“comprises”, “comprising”, or any other variation thereof, are intendedto cover a non-exclusive inclusion, such that a process, method,article, or apparatus that comprises a list of elements does not includeonly those elements but may include other elements not expressly listedor inherent to such process, method, article, or apparatus. Further, noelement described herein is required for the practice of the inventionunless expressly described as “essential” or “critical”.

1. A method for creating an open transaction instrument for use in aretail environment, comprising: receiving account codes and trackingcodes, wherein one of the account codes respectively correspond to oneof the tracking codes, wherein one of the account codes is respectivelyassociated with a transaction account and the transaction account isassociated with the open transaction instrument, wherein a packagecontains the open transaction instrument; at least one of: embossing,printing and encoding one of the tracking codes at least one of: on theopen transaction instrument, on the package, in the package, and onanother item within the package; and, facilitating distribution of theopen transaction instrument, wherein the open transaction instrument isoffered by a merchant to a consumer and is directly accessible by theconsumer.
 2. The method of claim 1, further comprising at least one of:embossing, printing and encoding one of the account codes on therespective open transaction instrument.
 3. The method of claim 1,further comprising inserting the open transaction instrument into thepackage having the tracking code that corresponds to the account code ofthe open transaction instrument.
 4. The method of claim 1, furthercomprising at least one of: embossing, printing and encoding indicia ofa product sponsor on the open transaction instrument.
 5. The method ofclaim 1, further comprising incorporating onto the open transactioninstrument at least one of: a magnetic stripe, RFID, antenna, smartchip, bar code, and clear surface.
 6. The method of claim 1, furthercomprising locating the tracking code on the open transaction instrumentsuch that the tracking code is visible through the package.
 7. Themethod of claim 1, wherein the open transaction instrument is at leastone of: paper, an RFID device, and a signal of the account codetransmitted to a personal digital assistant of the consumer.
 8. Themethod of claim 1, further comprising presenting the tracking code in atleast one of: a numerical format, a code format, bar code format,encrypted format, radio frequency format, and magnetic stripe format. 9.The method of claim 1, further comprising presenting the account code inat least one of: a numerical format, a code format, bar code format,encrypted format, radio frequency format and magnetic stripe format. 10.The method of claim 1, further comprising visually displaying theaccount code on the open transaction instrument.
 11. An apparatus havingan open transaction instrument included in a package that is configuredto be distributed in a retail environment, the apparatus comprising: theopen transaction instrument configured to be offered by a merchant to aconsumer and the open transaction instrument is configured to bedirectly accessible by a consumer, wherein the open transactioninstrument is configured to be generally accepted by merchants that arenot directly affiliated with each other, and wherein the opentransaction instrument is associated with a transaction account; theopen transaction instrument having an account code associated with theopen transaction instrument, wherein the account code is one of aplurality of account codes, wherein one of the plurality of accountcodes respectively correspond to one of a plurality of tracking codes,wherein one of the plurality of account codes is respectively associatedwith a transaction account and the transaction account is associatedwith the open transaction instrument, wherein the package contains theopen transaction instrument; and, a tracking code, wherein the trackingcode is one of the plurality of tracking codes, wherein at least one of:the open transaction instrument, the package, and another item withinthe package, includes the tracking code.
 12. The apparatus of claim 11,wherein the open transaction instrument includes indicia of a productsponsor.
 13. The apparatus of claim 11, further comprising at least oneof: a magnetic stripe, RFID, antenna, smart chip, bar code, and clearsurface.
 14. The apparatus of claim 11, further comprising the trackingcode located on the open transaction instrument and visible through thepackage.
 15. The apparatus of claim 11, wherein the open transactioninstrument is the account code.
 16. The apparatus of claim 11, whereinthe open transaction instrument is at least one of: the account codeprinted on paper, the account code encoded into an RFID device, and asignal of the account code transmitted to a personal digital assistantof the consumer.
 17. The apparatus of claim 11, wherein the trackingcode is presented in at least one of: a numerical format, a code format,bar code format, encrypted format, radio frequency format, and magneticstripe format.
 18. The apparatus of claim 11, wherein the account codeis presented in at least one of: a numerical format, a code format, barcode format, encrypted format, radio frequency format and magneticstripe format.
 19. The apparatus of claim 11, wherein the account codeis visually displayed on the open transaction instrument.